A Price Ceiling Is

question 63

Multiple Choice

A price ceiling is

• A)often imposed on markets in which "cutthroat competition" would prevail without a price ceiling.
• B)a legal maximum on the price at which a good can be sold.
• C)often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
• D)All of the above are correct.

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Definitions:

Government Tax Revenue

Funds collected by the government from taxes imposed on individuals and businesses, used to fund public services and infrastructure.

Domestic Price

The price at which goods and services are sold within a country’s borders, influenced by local demand and supply conditions.

Tariff

A tariff is a tax imposed by a government on imported or exported goods, often used to protect domestic industries or generate revenue.

Import-Competing Clauses

Provisions that protect domestic industries by limiting or imposing conditions on the import of similar foreign goods.